on the rich and the republican proposal to get rid of tax loopholes. bowles/simpson would eliminate almost every tax deduction for individuals and corporations, with only a few exceptions for charity donations and home mortgage interests. >> this stuff goes to the wealthiest people in america. 20% of the american people use 80% of that stuff. >> we have $1.1 trillion of loopholes, of back door spending in the tax code. >> reporter: $1.1 trillion? >> annual. and that's what we said: "let's start with a plan that wipes those out." >> reporter: their plan also called for deep spending cuts-- $200 billion a year-- and streamline both the pentagon and the federal bureaucracy. medicare and social security over time would reduce benefits give on the higher income families. your big message here is social security and medicare have to be on the table. there's no choice. >> i think most people understand that medicare has to be part of the deal. and most people believe today that you ought to do social security on a parallel track. >> reporter: both men blame t